Reverse Mortgage News:

USA Today Examines FHA's HVCC (Appraisal) Guideline Adoptions
Written by Daily News Updates
Thursday, 14 January 2010 09:24
USA Today recently examined the FHA’s forthcoming adoption of select HVCC guidelines, and how the change will affect consumers. The article voiced opinions from components of the change including quotes from the National Association of Realtors (NAR) and the Appraisal Institute (AI), as well as counter comments from the Title/Appraisal Vendor Management Association (TAVMA) who are largely in favor of the guidelines. The article specifies how members of NAR and AI feel the changes, and other efforts to reform the industry, are hurting consumers and appraisers alike. These entities feel forcing lenders to use third party appraisal management company’s causes two main problems. 1) Appraisal management companies are providing appraisers — often from outside the market where the house is located — who are less qualified than independent appraisers that brokers and Realtors might choose. 2) Turn times of the appraisal process have increased significantly as NAR explained a member survey found almost 70% saying appraisal times had risen by more than eight days under the new rules. In contrast, the article quoted Don Blanchard, former president of TAVMA who stated, “It is mistaken to say appraisal management companies a re the cause of these values. It's the market," Furthermore the article sited TAVMA’s support of third party appraisal parties as they feel these firms provide well-qualified appraisers on a regular basis.
New Research Shows Annual Home Price Increase of 5%

Home prices in 2009 rose 5.2 percent, according to latest housing market update from Altos Research LLC and Real IQ..

The two California-based data providers’ numbers are based on a 10-city composite index, which shows that prices effectively bottomed out in January 2009 at $470,017, climbed throughout the first half of the year to $509,030 in July before returning to a gradual downward trend and ended at $494,426 in December.

The researchers expect prices to continue showing modest declines throughout the seasonally weak winter months of 2010. During the month of December the index was down by 1.0 percent.

The Real-Time Housing Market Update from Altos and Real IQ reveals that real estate listing prices fell in 25 of 26 markets during December, with Miami being the only city where asking prices increased, up 1.0 percent for the month.

The largest monthly drop in the price of properties listed occurred in San Diego with prices falling 4.3 percent, followed closely by Salt Lake City which showed a 3.5 percent decline. San Diego also experienced the steepest quarterly drop in asking prices – down 7.3 percent.

The rate of decline has slowed in Las Vegas but that market continues to show the largest decline during the downturn. In November 2007, the median asking price was $342,140 but it fell to just $166,338 in December 2009.

The inventory of listed properties fell in 24 of 26 markets tracked in December, according to the report. Inventory declines were largest in Boston and the California markets of Los Angeles, San Francisco, and San Jose. The widespread drop-off in listed properties should help moderate near-term price declines, the report said.

Based on the researchers’ analysis, all markets except San Francisco had a median days-on-market of 100 or more in December. By far, the market with the slowest rate of inventory turn-over was Miami with a median of 247 days-on-market, or more than eight months.

Reverse Mortgage Community Applauds Prosecutors of Reverse Mortgage Defrauder

Written by Daily News Updates
Monday, 11 January 2010 09:53

A former Southern California mortgage broker was sentenced to six years in prison last Friday, for defrauding an 86-year-old San Francisco woman out of $140,000. The woman responded to a mailing in February of 2008 from a company in Orange County that was advertising reverse mortgages. She then began working with employee John McTaggert and agreed to obtain a legitimate Reverse Mortgage.

In short, Mctaggert got the woman to sign over $140,000 fro mthe reverse mortgage, promising to invest it and instead, deposited the money into his own bank account, quit his job, and moved to Memphis, Tennessee. After his arrest in March of 2009, prosecutors were able to charge McTaggart with one count of first-degree burglary because the mortgage and annuity deals were negotiated in the woman’s home.

Although these cases are few and far between, (only several hundred out 400,00+), it is never something that the industry looks forward to hearing about. Furthermore, it is clear that the reverse community is in full support of proper sentencing and punishment for all individuals even considering defrauding the very seniors that our product is meant to be helping.

Opinion Piece - Reverse Mortgages
Written by John A. Smaldone  Wednesday, 06 January 2010 17:13

My name is John A. Smaldone. In a recent article, I was pleased to see an organization like the Assisted Senior Living take a positive position toward reverse mortgages. I feel such positive publicity will help rectify many past unjustifiable statements and media blasts. While I agree 100 percent that the HECM product is a safe and effective option for seniors in need of supplementing their income, I must argue that in today’s economic environment, the Reverse Mortgage program is also needed to save seniors from foreclosure, reduce their debt, resolve federal and state liens and for so much more.

As a HUD/FHA controlled program, the intent of the Reverse Mortgage was to do just what the Assisted Senior Living article stated; to supplement retirement income and improve the quality of life for seniors. Today, more than ever, we see reverse mortgages being used to alleviate situations of severe hardship despite agencies such as Fannie Mae, HUD and FHA, as well as state and federal legislators, driving the effectiveness of the Reverse Mortgage out of reach of those who need it most, our seniors.
Delinquent Mortgages Continue to Increase in Michigan 12/10/2009
By: Brittany Dunn Printer Friendly View

In recent data released by Farmington Hills, Michigan-based GreenPath Debt Solutions, a nonprofit consumer credit counseling service, the company found there is an increasing amount of Michigan homeowners facing mortgage delinquency.

The number of Michigan residents with past due mortgages had trended upward throughout 2009. According to GreenPath, Michigan clients with past due mortgages soared 32 percent during the first 11 months of this year, compared to the same period in 2008.

“The increase is due, in part, to the adjustment in the Michigan foreclosure law that went into effect in early July,” said Kathy Conley, GreenPath housing counselor.

Conley explained that the law requires lenders to give delinquent homeowners a notice that includes a list of approved housing counselors. She said homeowners are now able to initiate a 90 day stay on a foreclosure by contacting a counselor for help. Counselors will then aid homeowners in working with a lender in an effort to save their home./p>

“Based on our findings, we also are projecting a 20 percent increase in clients with past due mortgages for the entire fourth quarter 2009, which is a sign that Michigan homeowners are still struggling in this trying economy,” Conley said.

With 25 offices across Michigan, GreenPath offers a variety of housing solutions to its clients including mortgage default and delinquency counseling, first-time homebuyer counseling, reverse mortgage counseling, and home equity loan counseling. Since 1961, the company has aimed to help people resolve financial problems and achieve goals through financial counseling, debt management, and education.